Wilh. Wilhelmsen ASA

Earnings Release • Nov 11, 2015

Wilh. Wilhelmsen Holding ASA (WWH): Results for the third quarter 2015

Wilh. Wilhelmsen Holding ASA (WWH): Results for the third quarter 2015

(Lysaker, 11 November 2015) Wilh. Wilhelmsen Holding

(WWH) reported a 7% decline in top line, mainly driven

by weaker performance in the group's shipping

activities. Non-recurring items of USD 250 million

negatively affected the operating profit.

WWH delivered a total income of USD 795 million in the

third quarter.

"Reduced demand for transportation of autos and high

and heavy units had a negative impact on our shipping

income. In addition, certain activities related to our

maritime service segment showed reduced earnings.

Combined with a continued strong USD, this led to

weaker underlying operations," says Thomas Wilhelmsen,

group CEO.

The operating loss ended at USD 157 million. This

included a USD 200 million provision in Wilh.

Wilhelmsen ASA (WWASA) related to ongoing anti-trust

investigations in two joint ventures and a USD 50

million impairment charge in Wilhelmsen Maritime

Services linked to the remaining goodwill originating

from the Callenberg acquisition in 2008. Adjusting for

these two items, the operating profit amounted to USD

93 million, down 10% compared with the previous

quarter.

"It is unfortunate to present a quarter deeply

affected by a provision related to ongoing anti-trust

investigations in WWASA's joint ventures, Wallenius

Wilhelmsen Logistics (owned 50%) and EUKOR Car

Carriers (owned 40%). As the investigations are

confidential, we cannot comment on specific

jurisdictions. However, we see it as prudent to make a

provision. We do expect further clarifications in the

coming months, but understand the progress is slower

in some jurisdictions, postponing a final conclusion,"

says Wilhelmsen.

Net financials was an expense of USD 69 million,

impacted by a USD 24 million loss, mainly unrealised,

on net interest rate derivatives. The tax expense

amounted to USD 16 million leading to a net loss after

minorities of USD 186 million or a loss of USD 4.00

per share for the quarter.

WWH's board of directors has, based on an

authorisation granted by the annual general meeting on

23 April 2015, resolved to pay a second dividend of

NOK 2.00 per share, totalling NOK 93 million. The pay-

out will take place on 26 November.

Commenting on the outlook for the group, Mr Wilhelmsen

says: "The car and ro-ro markets are expected to

remain challenging, with added pressure on margins.

For our maritime service segment, we expect the

challenging offshore market to continue to affect

parts of the portfolio, while most business areas will

continue to benefit from the strong USD."